DECEMBER 22, 2015 11:17 AM (EST)

A.M. Best Assigns Issuer Credit Rating to Randall & Quilter Investment Holdings Ltd.

 Anthony Silverman
Senior Financial Analyst
+(44) 20 7397 0264

Catherine Thomas
Senior Director, Analytics
+(44) 20 7397 0281

Christopher Sharkey
Manager, Public Relations
+(1) 908 439 2200, ext. 5159

Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644


LONDON - DECEMBER 22, 2015 11:17 AM (EST)
A.M. Best has assigned an issuer credit rating (ICR) of bbb- to Randall & Quilter Investment Holdings Ltd. (R&Q) (Bermuda). The outlook assigned to the rating is stable.

The rating reflects R&Q’s solid risk-adjusted capitalisation, strong profile within the run-off market and an operational performance that is recovering toward its historically good levels following a loss in 2014.

R&Q owns, through its subsidiaries, non-life insurance portfolios in runoff, service companies active in insurance and insurance entities that are open to new live business. Live business is written through Accredited Surety and Casualty Company, Inc. and a participation in Lloyd’s Syndicate 1991.

R&Q’s financial strength is enhanced by the limited nature of the R&Q Group’s exposure to loss of value in the majority of its subsidiary insurance companies in run-off. A.M. Best has assumed, in assigning the ICR to R&Q, that R&Q would provide no further support beyond the net assets of these subsidiaries and R&Q’s (limited) additional liability through intra-group reinsurance.

R&Q’s strong profile in the run-off market helps to generate a flow of profitable run-off acquisitions. It is important that this flow is maintained, as the profit arising on these acquisitions is essential to funding the group’s expense levels and supporting its financial performance. R&Q has built service companies around its core run-off expertise, which benefit from revenue arising from group-owned run-off assets. Some of these service activities are well-positioned to gain a higher level of third-party revenue and achieve the scale required for a more attractive financial performance.

An offsetting factor is the high proportion of earnings R&Q returns to investors through dividends and share buybacks, which has made it more difficult for R&Q to build its risk-adjusted capitalisation.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

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